U.s. Study Of Library Deal Asked

May 23, 1986|By James Strong.

Recurring allegations of irregularities in the city`s acquisition of the former Goldblatt Bros. department store to house the city`s planned $100 million central library prompted Mayor Harold Washington Thursday to call for a federal investigation into problems in construction of the facility.

Allegations contained in recent news reports allege that the city paid at least $1 million more than appraisals called for in 1982 for the Loop store, at 333 S. State St., despite earlier and lower appraisals of the property.

When questioned about the reports, Washington said the city`s Office of Municipal Investigations was looking into it and added that he would seek an independent inquiry by the U.S. Justice Department.

Noting that the ``deal`` has been concluded--the city paid $10 million for the site several years ago--Washington said, ``Since it was first discussed there have been problems. You know it and I know it.

``There was speculation, charges, that there were inflated appraisal costs, that there were charges that it was an attempt to save the Goldblatt people who were in serious financial trouble.``

Although the property has been acquired, no substantial agreements have been made on financing the new library and construction and rehabilitation has languished because of debate over the facility.